Earnings Season, Market Comments

Earnings season has begun, but even though there are many good reports, it seems like nothing can overcome the worldwide bad news and commentary.

  1. Energy stocks are down. It is probably a good time to buy into bargains, but who knows?
  2. Housing starts are in the news, but I can't get a handle on the commentary. It is strange. Is it good or bad. On a TV show that is notorious for bad news, they couldn't seem to frame it properly.
  3. One guy said—trying to use a metaphor—that the situation coming out of China is confusing. His example: CDOs from the 2008 worldwide financial crisis (I say, made up crisis) is like China today. CDO is a Collateral Debt Obligation. See, right there that conjures up some bad reminders. His point was that what is going on and what is coming out of China is like a CDO. You never know what you get.
  4. Last December Chinese authorities link their currency to a basket of currencies. Not the American dollar, exclusively. A basket? Hmmmm. No wonder the uncertainty. And anytime a Communist regime makes such moves, it's probably good to get out of the way and let the market find its own level. Talk about proverbial "Falling Piano." Maybe a better comparison is a plate of Mugu Gai Pan that has fallen on the floor. The food is still good .  .  .  but who want s to try it? Okay, how do you spell Moo Gu Gai Pan?
  5. We'll be looking for specific opportunites, but we're not excited to play just anything.
  6. I went to see Benghazi. I know it's called 13 Hours. But Benghazi signifies a complete story. It was an awesome movie. It's a complete story as far as it went, but it sure didn't get to the truth about the politics behind it. I wish we could make Ms Hillary watch this movie everyday for the rest of her life.
That's it for now. Check out SVU and CHK today.